Michael Saylor Wants A Trillion-Dollar Bitcoin Balance Sheet - Here's His Rationale

"In a wide-ranging conversation with Bitcoin Magazine, the Strategy co-founder sketched out an "endgame" where his firm builds a trillion-dollar bitcoin balance sheet - and then uses that capital base to help reinvent the global credit system. "I think the endgame is we accumulate a trillion dollars worth of bitcoin and then we grow it 20, 30% a year," Saylor told Bitcoin for Corporations Managing Director George Mekhail. "The endgame is get to a trillion dollars of collateral growing 30% a year" At the core of Saylor's vision is scale. He believes Strategy - and other Bitcoin treasury companies likely to follow - can ultimately accumulate a trillion dollars worth of BTC."

"Once there, the mechanics of bitcoin's long-term appreciation, historically averaging around 21% annually, would supercharge that capital stock. Bitcoin-backed credit with favorable yields Layered on top of that, Saylor sees new opportunities to issue bitcoin-backed credit at yields far superior to the fiat system. The result, he argues, would be a dual flywheel: a massive store of digital collateral growing in value while simultaneously fueling the creation of digital credit markets."

"Unlike today's fiat-based debt systems, where risk-free rates are often suppressed near zero, Bitcoin-collateralized credit could deliver healthier yields, potentially two to four percentage points above traditional corporate or sovereign debt. That, in Saylor's telling, could reinvigorate credit markets worldwide. Instead of investors enduring years of "financial repression" in Europe or Japan, where trillions of dollars sit in low-yielding bonds, digital credit backed by Bitcoin would provide stronger returns and greater transparency."

The plan aims to build a trillion-dollar bitcoin balance sheet that compounds at 20–30% annually, leveraging bitcoin's long-term appreciation (around 21% historically). That capital base would serve as digital collateral to underwrite bitcoin-backed credit, creating a dual flywheel of appreciating collateral and expanding credit issuance. Bitcoin-collateralized debt targets yields two to four percentage points above typical corporate or sovereign bonds, providing alternatives to low-yield fiat markets. With capital held at two-times over-collateralization, the structure projects enhanced safety relative to conservative AAA-rated debt while offering greater transparency and stronger returns for global credit markets.

Read at Bitcoin Magazine